Other Things Being Equal, an Increase in the Rate of Interest

question 64

Multiple Choice

Other things being equal, an increase in the rate of interest causes a/an:

• A) upward movement along the demand for money curve.
• B) downward movement along the demand for money curve.
• C) rightward shift of the demand for money curve.
• D) leftward shift of the demand for money curve.

---

Definitions:

Payment Now

An immediate payment, as opposed to payments scheduled in the future, often required to secure a purchase or service.

Interest

The cost of borrowing money, typically expressed as a percentage of the total amount borrowed.

Single Payment

A one-time transaction involving the transfer of money or other value from one party to another.

Lender

An individual or institution that provides funds to another with the expectation that the funds will be repaid, typically with interest.